Netflix closes its only AAA game studio

Netflix has shuttered its Southern Californian AAA game studio Team Blue after less than two years of operation. As reported by Game File, along with the studio closure, three of Team Blue’s most notable hires have also left the company.

Blue was Netflix’s fifth internal game studio, and said to be working on a new AAA IP while “pursuing a big-budget multi-device strategy.”

Since 2022, the studio had attracted industry attention by hiring senior developers from Blizzard, Bungie and Sony Santa Monica—producer Chacko Sonny, creative director Joseph Staten and art director Rafael Grasseti.

The studio’s closure reportedly came amidst a round of layoffs at Netflix that affected 35 people. The move marks a shift in strategy at the streaming platform, which stated that it is taking a “mobile-first” approach to game releases, following downloads of the Grand Theft Auto Trilogy on Netflix surpassing the 30 million mark.

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In July, Epic Games former EVP of game development, Alain Tascan, was named president of Netflix Games. At the time, Tascan said that he intended to build upon the “remarkable foundation” the Netflix Games team has laid, stating that Netflix is “uniquely positioned to redefine the future of gaming.” It is now unclear whether Netflix will continue to operate in the AAA space.

Netflix Games launched in 2021, and has since brought over 100 games to the platform. As of July, the streaming company had over 80 game projects in development.